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CONFIDENTIAL
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5. WE SHOULD FIRMLY RESIST ANY U.S. PROPOSAL FOR AN EXTENSION OF
SCOPE OF THE ARRANGEMENT TO COVER NON-COTTON TEXTILES,
6. THE DISCUSSIONS ARE LIKELY TO BE PROLONGED. IF AT AN APPROPRI STAGE IN THE LIGHT OF OUR CONTACTS WITH OTHER COUNTRIES IT SEEMS TACTICALLY ADVANTAGEOUS TO DO SO, WE SHOULD EXPLAIN IN THE LINES SET OUT IN PARAGRAPH 29 WHY WE DO NOT REGARD THE PRESENT POSITION DOR PROSPECTS AS SATISFACTORY AND SUGGEST THE ESTABLISHMENT OF A WORKING PARTY TO REVIEW THE SITUATION AND TO RECOMMEND THE BEST WAYS OF DEALING WITH IT. ONE OF OUR OBJECTIVES WOULD BE TO BRING WITHIN GATT CONSIDERATION THE QUESTION OF QUOTE VOLUNTARY RESTRAINTS UNQUOTE ON EXPORTS OF NON-COTTON TEXTILES. IT WOULD BE OUR HOPE THAT SUCH A WORKING PARTY WOULD HAVE THE EFFECT OF HEADING OFF ANY FURTHER PROTECTIONIST TENDENCIES IN THE TEXTILES FIELD OR MORE GENERALLY: AND THAT IT MIGHT SUCCEED IN BRINGING MORE ORDER INTO THIS AREA OF INTERNATIONAL TRADE THAN OBTAINS AT PRESENT. BEFORE SUGGESTING SUCH A WORKING PARTY, WE SHOULD WORK OUT IN GREATER DETAIL WHAT ITS TERMS OF REFERENCE MIGHT BE. 7. IF MINISTERS AGREE WITH THESE RECOMMENDATIONS, WE WOULD KEEP CLOSELY IN TOUCH WITH THE EEC AND OTHER MAJOR IMPORTERS..
IN THE MEANTIME, WE SHOULD HAVE TO ACCEPT THAT THERE MIGHT BE SOME SPREAD IN THE EXTENT OF VOLUNTARY RESTRAINTS FOR SOME NON-COTTON TEXTILES BY COUNTRIES WHO HAVE FELT OBLIGED TO ACCEPT
THIS METHOD.
ENDS.:
STEWART
DEPARTMENTAL DISTRIBUTION
COMMODITIES DEPT.
HONG KONG DEPT.
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CONFIDENTIAL
COPIES TO:
MR. D.I. DUNNETT BOARD OF
TRADE MR. S. STEWART, BOARD OF TRADE MR. TOMS, BOARD OF TRADE
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